BTEC Business Level 3 Unit 6 - Principles of Management Exam Answers - D* Report answer for Bingham’s Bakehouse.
This is for the report (activity 1) of the Bingham’s Bakehouse practice exam for unit 6.
Exam can be found here:
Formal report on the current management challenges facing Bingham’s Bakehouse Ltd and
suggested management actions
Introduction
In this report I will be analysing the management style issues facing Bingham’s Bakehouse
Ltd and suggests ways of improving their current situation. The main issues that I have
identified are all mostly related to the change in management when the current owner’s
father passed away in 2014.
Management and leadership issues
One of the main management style issues is that staff turnover of mangers increased 300%
(10 to 40) from 2013-2014. This happened at the same time as the previous owner died and
therefore may be the reason for the sudden loss of staff. From the information we have
been given it is clear that the staff did not like the change in management, because of the
change in management style from paternalistic to autocratic. This is evidenced by ‘they are
unhappy with the power culture and management style.’, ‘Their autocratic management
style is very different to the paternalistic style of their father’. This is an issue for the
company because when an autocratic management style is used all the time on a workforce
is can make staff feel undervalued and therefore demotivated. Sometimes an autocratic
management style does work, however in the information provided we can see that staff
are very unhappy with the autocratic management style and are feeling undervalued.
Employees are also unhappy with the power culture which highlights their autocratic style.
With a power culture you only have a few people in charge that control everything, in this
case that would be Jack and John. Although this is a strong management style that can make
tasks very clear and quick decisions, it leaves little room for people within the company to
progress and develop. This paired with Jack and John’s lack of experience and
business/management qualification means that they have a lack of knowledge and
experience. Due to their power culture and autocratic style it will be hard for John and Jack
to ask for help or advice with management/business decisions and so have nowhere to get
advice.
Due to the brother’s autocratic leadership style, staff turnover levels and ‘unhappy’
employees it is likely that staff are unmotivated. F.W. Taylor suggested that employees were
only motivated by money or other financial benefits. However this was disproved when
Herzberg suggested that financial incentives where not a motivated but could de-motivate
employees if not at the right levels. Before 2014 staff would have been used to the father’s
paternalistic management style which would have likely given staff recognition and a sense
of achievement within the company. Currently employees will be lacking motivation if they
are only being motivated by money and not being allowed to progress in the organisation.
By having demotivated workers staff will have:
Lower productivity
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